Property Insurance

There are generally 3 types of property insurance that you may be required to have on the home that secures your loan: Hazard Insurance (also known as Homeowner's Insurance), Flood Insurance and Wind Insurance. 

For more information or to provide your insurance information, contact us at:

New American Funding LLC.
PO Box 5071
Troy, MI 48007-5071
(877) 826-4428, M-F 7am to 7pm CT
FAX: (248) 781-9295
EMAIL: NAFTeam@pfic.com

Why am I receiving letters about my Homeowner's Insurance?

Investors and insurers of mortgage loans, such as Fannie Mae, Freddie Mac, VA and HUD, require lenders to ensure that borrowers maintain adequate homeowner's insurance on homes that secure their loans throughout the term of the loan. Where a borrower fails to maintain adequate insurance, the lender is required to obtain an insurance policy on the borrower's behalf to cover the property, which is frequently more expensive than the policy that a borrower could obtain themselves. Where New American Funding determines that there is not evidence of adequate insurance coverage, New American Funding will provide you notices required by federal law in order to obtain your insurance information. For more information about your homeowner's insurance requirements:

New American Funding Guide to Hazard and Flood Insurance

Why am I required to have Flood Insurance?

Federal law requires lenders to ensure that borrowers maintain adequate flood insurance on homes that secure their loans. Flood insurance is only required for property that is located in a Special Flood Hazard Area (SFHA) as determined by the Federal Emergency Management Agency (FEMA). When your loan is made, the location of the home that secures it is evaluated using a Standard Flood Hazard Determination Form from FEMA. If the home is determined to be in a flood zone that is an SFHA, you will be required to have adequate flood insurance in place throughout the term of the loan. You may also be required to obtain flood insurance if the flood zone in which your home is located is rezoned by FEMA to be an SFHA. Flood zones are defined by FEMA. If you feel that your home should not be in an SFHA, you can contact a FEMA mapping specialist at (877) 336-2627. Where a borrower is required to maintain adequate flood insurance on a home but fails to do so, the lender is required to obtain a flood insurance policy that a borrower could obtain themselves. For more information about your flood insurance requirements:

New American Funding Guide to Hazard and Flood Insurance

Do I have to have Wind Insurance?

In order for your homeowner's insurance to meet the investor and insurer requirements that apply to your loan, it must cover damage from wind. However, in some states, wind damage is allowed to be excluded from homeowner's insurance policies. If your homeowner's insurance excludes wind coverage, you will need to obtain a separate Wind Insurance policy.

Property Insurance Guides and Forms